Coworking Demand Heats Up As Supply Lags

Coworking spaces now span more than 120 million square feet across 5,800 locations in the US — but supply is still falling short in many major cities, according to new data from CommercialEdge.

Newark claims the highest growth among freelancers between 2019 and 2021, with an increase of 85%, but the city has just two coworking spaces per 1,000 freelancers. The same goes for Riverside, Honolulu, and Fort Worth. In Honolulu, freelancers make up more than 4% of the total workforce. And in the Midwestern and Southern enclaves of Indianapolis, Nashville, and Milwaukee, there are just three coworking spaces per 1,000 freelancers.

Meanwhile, freelancers in Pittsburgh and Irvine have the most options: “Despite seeing a significant decrease of 10% in its number of freelancers, the city provides the highest number of coworking spaces on our list — 12 per 1,000 freelancers,” the report notes. “At the same time, less than 2% of the total employed population in Pittsburgh were freelancers in 2021. Even so, it’s important to note that, as of last year, the number of remote workers in this area increased more than 300% compared to 34,000 workers — likely driving the demand for flexible workspaces.”

In Irvine, freelancers have 11 available spaces per 1,000 freelancers. And “that indicates a larger supply even for a demographic that appears to be on a downward trajectory in this area, as the number of freelance workers in Irvine has decreased by 15% in 2021,” the report notes.

The South and Western regions also claimed the most freelancers nationwide, with more than 6 million nationally. Around 2.3 million were in the South, while another 1.5 million in the Western region. And of the 27 million remote workers across the nation, more than 9.3 million were  from the South, while 7.5 million were in the West.

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